Minerals must benefit all

by disillusionment over lack of sufficient and swift action to cause change that guarantees an equitable sharing of wealth from minerals, which is a finite resource, in modern Zimbabwe.
Participants in this race are many and indiscriminate starting with the “makorokoza” to the political bigwigs and then, from an opposite direction, the international conglomerate. Concern has also centred around the absence of an environment that creates equal opportunities for equal participation in the mining sector by previously excluded and disadvantaged groups such as women and the youth, constituting 52 percent and 60 percent of Zimbabwe’s population, respectively.
Last week, civic society raised alarm and repeated calls on the urgent need for equitable distribution of mineral riches. Led by the Zimbabwe Environmental Lawyers Association, the Chiadzwa Community Development Trust and the Zimbabwe Council of Churches, civic society hosted the first Zimbabwe Alternative Mining Indaba in Harare that, among many things, sought to make Zimbabwe’s rich mineral resources work for Zimbabweans.
The Indaba was driven by a firm belief and conviction that the national mineral wealth should result in improved economic and social well being, and environmental sustainability.
That, the Indaba heard, had not been achieved in a free Zimbabwe, which by far, is still grappling with issues of extreme poverty, corruption and underdevelopment.
“We are aware of the significant contributions that prudent, efficient, equitable and sustainable exploitation and management of our natural resources can                         make towards achievement of broad-based socio-economic development,” read a statement by the Indaba organisers.
Pursuant to this, the declaration stated, the Zimbabwe Government must eliminate corruption, plug revenue leakages, strengthen good corporate governance, and increase policy control that cascade down to the man on the street.
Concern is widespread that benefits from the mining industry, which accounts for 13 percent of GDP, has not been anchored on transparency, accountability, environmental sustainability, socio-economic justice and cultural integrity, which have combined to promote underhand dealings.
Leakages in gold, diamond, platinum, chrome and other minerals have cost Zimbabwe billions of dollars in lost revenue.
For example, earnings from diamond amounted to just US$30 million during the first five months to May 2012 compared to Treasury estimates of US$240 million, giving birth to a massive downgrade of the current budget to US$3,4 billion, and downward revision of economic growth targets.
“Concerned by poor recruitment policies, remuneration, working and living conditions in the mining sector, as well as poor revenue generation, management, use and distribution, we urge Government to ensure mining policies do not give excessive incentives to foreign investments but instead put in place appropriate tax policies that curb capital flight through tax evasion and avoidance.
“The current mining tax regime must also be revised in a way that would enable Government to collect commensurate royalties on mineral sales, gross production and tax on mining rights.
“Government must also ensure corporate social accountability and responsibility shifts from being a voluntary to mandatory mechanism with agreed minimum standards, which benefit the affected communities.
“The Community Share Ownership Schemes should enable communities directly affected by mining activities to benefit.
“Thus, Government must establish other environmental and social funds such as the royalties for communities, a stabilisation fund, heritage fund, Campfire fund, and mine rehabilitation and closure fund,” read a communique crafted at the Indaba.
To further increase participation in the sector by locals and other disadvantaged groups, the civic society called for the immediate passing and implementation of the Mines and Minerals Amendment Act, the Diamond Act, the Diamond Policy, the Sadc Mining Protocol and the African Mining Vision.
They also want a law that hiked mining licence fees to astronomical levels earlier in the year cancelled, and the finalisation and regularisation of a legislation that allows for artisanal and small-scale mining.
The civic society also wants every mining firm to first list on the Zimbabwe Stock Exchange before listing elsewhere.
This would encourage participation by local Zimbabweans, and avoid the Zimplats case where Zimbabwean platinum is traded on the Australian Stock Exchange and not the ZSE. Theirs is much a voice crying out from the wilderness.
It is not certain if that voice will be heard. But the cries for change in Zimbabwe’s mining industry are getting louder each day and they cannot be ignored any more.
The Alternative Mining Indaba was a parallel conference to the main Zimbabwe Mining Indaba held during the same week in the capital, and attempted to include those that had been excluded from the main through financial limitations.
Drawing experiences from Zambia, Mozambique, South Africa and Tanzania, mining indabas have provided alternative platforms for communities to share experiences, build capacity and foster solidarity among people, civic organisations and other stakeholders of affected communities.
Also present at this year’s edition of the Mining Indaba were traditional leaders, legislators, NGOs, youth and women groups, faith-based organisations and community organisations with regional representation from South Africa and Zambia.
Mining is a key strategic sector for Zimbabwe. Future economic growth is being built around mining, which raked in US$1,5 billion in export revenue during the first seven months of this year versus US$600 million in the comparable period a year earlier.
There are more than 40 mineral occurrences in Zimbabwe found mostly around the Great Dyke, a mineral-rich belt stretching for 550km across the centre of the country from north to south.
Platinum reserves are the second largest in the world after South Africa while for a long time until recently Zimbabwe was the world’s third largest gold producer after South Africa and Ghana.
Gold production peaked at nearly 30 tonnes in 1916 but that feat is yet to be repeated.
The discovery of alluvial diamonds in Manicaland means that Zimbabwe now accounts for 25 percent of global production.